Note: Inflation-adjusted annual average growth using income after taxes, transfers and non-cash benefits.

Income Growth

Over previous 34 years

The poor and middle class used to see the largest income growth.

5%

4%

But now, the very affluent

(the 99.999th percentile)

see the largest income growth

3%

In 1980

2%

5th

percentile

In 2014

1%

99th percentile

0

0

10th

30th

50th

70th

90th

Lower

Higher

Income PERCENTILE

Note: Inflation-adjusted annual average growth using income after taxes, transfers and non-cash benefits.

Income Growth

Over previous 34 yearst

But now, the very affluent

(the 99.999th percentile)

see the largest income growth

+6%

5%

The poor and middle class used to see the largest income growth.

99.99th percentile

4%

3%

In 1980

99th percentile

2%

In 2014

1%

99th percentile

5th percentile

0

0

10th

20th

30th

40th

50th

60th

70th

80th

90th

100th

Income PERCENTILE

Higher Income

Lower Income

Note: Inflation-adjusted annual average growth using income after taxes, transfers and non-cash benefits.

Many Americans can’t remember anything other than an economy with skyrocketing inequality, in which living standards for most Americans are stagnating and the rich are pulling away. It feels inevitable.

But it’s not.

A well-known team of inequality researchers — Thomas Piketty, Emmanuel Saez and Gabriel Zucman — has been getting some attention recently for a chart it produced. It shows the change in income between 1980 and 2014 for every point on the distribution, and it neatly summarizes the recent soaring of inequality.

The line on the chart (which we have recreated as the red line above) resembles a classic hockey-stick graph. It’s mostly flat and close to zero, before spiking upward at the end. That spike shows that the very affluent, and only the very affluent, have received significant raises in recent decades.

This line captures the rise in inequality better than any other chart or simple summary that I’ve seen. So I went to the economists with a request: Could they produce versions of their chart for years before 1980, to capture the income trends following World War II? You are looking at the result here.

The gray line in the chart above, labeled "1980," shows the change in income from 1946 to 1980. Below, you can watch the change across every 34-year period starting with 1946-1980 and ending with 1980-2014. Each line is labeled with the final year in the period:

INCOME GROWTHOver previous 34 years

The message is straightforward. Only a few decades ago, the middle class and the poor weren’t just receiving healthy raises. Their take-home pay was rising even more rapidly, in percentage terms, than the pay of the rich.

The post-inflation, after-tax raises that were typical for the middle class during the pre-1980 period — about 2 percent a year — translate into rapid gains in living standards. At that rate, a household’s income almost doubles every 34 years. (The economists used 34-year windows to stay consistent with their original chart, which covered 1980 through 2014.)

In recent decades, by contrast, only very affluent families — those in roughly the top 1/40th of the income distribution — have received such large raises. Yes, the upper-middle class has done better than the middle class or the poor, but the huge gaps are between the super-rich and everyone else.

The basic problem is that most families used to receive something approaching their fair share of economic growth, and they don’t anymore.

income growth IN 1980

income growth in 2014

+6%

+6%

Average

income growth

4

4

Average

income growth

2.0%

1.4%

2

2

0

0

0

20th

40th

60th

80th

100th

0

20th

40th

60th

80th

100th

income growth in 1980

+6%

Average

income growth

4

2.0%

2

0

0

20th

40th

60th

80th

100th

income growth in 2014

+6%

Average

income growth

4

1.4%

2

0

0

20th

40th

60th

80th

100th

income growth in 1980

income growth in 2014

+6%

+6%

Average

income growth

Average

income growth

4

4

2.0%

1.4%

2

2

0

0

0

20th

40th

60th

80th

100th

0

20th

40th

60th

80th

100th

It’s true that the country can’t magically return to the 1950s and 1960s (nor would we want to, allthingsconsidered). Economic growth was faster in those decades than we can reasonably expect today. Yet there is nothing natural about the distribution of today’s growth — the fact that our economic bounty flows overwhelmingly to a small share of the population.

Different policies could produce a different outcome. My list would start with a tax code that does less to favor the affluent, a better-functioning education system, more bargaining power for workers and less tolerance for corporate consolidation.

Remarkably, President Trump and the Republican leaders in Congress are trying to go in the other direction. They spent months trying to take away health insurance from millions of middle-class and poor families. Their initial tax-reform plans would reduce taxes for the rich much more than for everyone else. And they want to cut spending on schools, even though education is the single best way to improve middle-class living standards over the long term.

Most Americans would look at these charts and conclude that inequality is out of control. The president, on the other hand, seems to think that inequality isn’t big enough.

Source: Thomas Piketty, Emmanuel Saez and Gabriel Zucman

Charts by Jessia Ma and Stuart A. Thompson

Correction: Aug. 8, 2017

An earlier version of a chart accompanying this column overstated the average income growth for American adults in 1980. It is 2 percent, not 2.5 percent.